Imagine your faithful old Ford finally broke down and it's time for you to get a new car to replace it. The only snag though, is that you're low on cash. So what are your options?

Let's see. First off, you could go for a bank loan. Or perhaps you could opt for one of your local car dealerships that offer attractive finance packages, but with high interest rates. But what would be your best option in a situation like this? Well, why not try a car auction website?

Not only are they the rage these days for their simplicity and convenience, a car auction website also allows you to grab some fantastic car deals without all of the hassle of driving down to a physical location. But first, here's the low-down on car auction websites...

If you do a search on Google or Yahoo for the above term, you'll come across plenty of sites offering a gamut of vehicles, ranging from Fords and Audis, to Chevys and Fiats. And all, at very reasonable prices too!

The cars being displayed for auction can be put up for bid by folks like you and I, or small-medium scale auto dealerships. Hence, prices can range from vehicles that have some reserve on the car (where a seller will not sell the vehicle unless and until he receives a bid higher than his set reserve price) to a car auction that has no reserve at all.

So for example, if a seller displayed a car with a reserve of $175 on a car auction website, and the highest bid he received was only $155, he could either accept that bid or re-list the vehicle on another car auction website. If you come across a super excellent car, then sometimes it might be worth it to bid on the price the seller is asking for. It's totally your call!

Another important thing to keep in mind when bidding is the exact cost and method of shipping and the location of the car. Since vehicles sold on a car auction website belong to sellers from all over the world, you'll want to check out the location before actually going ahead and placing your bid.

Remember, your bid will be considered final and legally binding as a contract, and if you happen to win the auction, you'll have to ensure you fulfill your side of the deal to the best of your ability. Otherwise, the seller has every right to take legal action against you!

And here's something else you want to consider - the reputation and feedback of the seller whose car you're interested in. Ebay Motors (a popular used car auction website) has a great system in place, where you can check out the feedback of each seller. See for similar systems on other car auction websites and make it a point to carefully read through the comments the seller has received.

Always purchase from auctioneers who've got an impressive reputation. This will go a long way in ensuring you have a pleasant experience at a car auction website.

Well, there you have it. Now why not spend some time browsing around for a great car auction website? You could soon be buying the car of your dreams - but at half the cost you'd normally have to fork out to a car dealer!